Financially troubled Air India got a small breather on Monday when a group of ministers set up for the airline cleared payment of Rs 532 crore to the Maharaja on account of the VVIP flights operated by it.

The airline, whose combined debt, losses and dues are almost Rs 87,000 crore at present and needs Rs 6,000 crore immediately to survive, also got an in-principal approval from the GoM for equity infusion of Rs 1,200 crore this fiscal. Apart from VVIP flights, AI was given the Rs 532 crore relief for evacuating Indians from Egypt.

Finance minister Pranab Mukherjee-led GoM discussed the airline's poor financials. Being aware that AI's requirement is way more than what the government has currently agreed for, aviation minister Vayalar Ravi said the GoM would meet again next week to discuss other financial issues. AI is set to default on its bank loan repayments.

A panel of ministers will meet next week to discuss infusing equity in loss-making state carrier Air India, Civil Aviation Minister Vayalar Ravi said on Monday. The panel has "on principle" approved recommending infusing Rs 12 billion as equity capital in the ailing airline, but a decision will be taken at the next meeting after a note to the cabinet is prepared, a source familiar with the discussions told reporters.